OC Transpo withholds $15 million in payments due to LRT disruptions in 2023, report shows
OC Transpo withheld $15.1 million in payments to Rideau Transit Maintenance in 2023 due to maintenance issues and extended shutdowns on the Confederation Line.
A new report for the Finance and Corporate Services Committee on the city of Ottawa's 2023 budget spending shows the multi-million dollar "performance deductions" OC Transpo claimed when the light-rail transit system was out of service last year.
The O-Train line was shut down for 28 days last July and August after an issue was discovered with one bearing on an LRT vehicle during routine inspection. When service resumed, RTM was running single-car service along the line between Blair and Tunney's Pasture stations.
- Sign up now for daily CTV News Ottawa newsletters
- The information you need to know, sent directly to you: Download the CTV News App
LRT service was also disrupted twice in the winter and spring of 2023 due to freezing rain.
Staff say O-Train Line 1 performance reductions were $15.1 million in 2023. The report does not provide a breakdown on the performance deductions.
The $15.1 million in savings during LRT shutdowns was offset by $3.1 million in costs for R1 and R2 replacement bus service, according to the city.
Under the project agreement between the city and Rideau Transit Group, the city can withhold payments for service not provided along the Confederation Line.
"Normally, with the (project agreement) that we have we don't pay RTG when they don't deliver the service," Transit Services general manager Renee Amilcar told reporters during a media briefing on July 24, when the LRT was out of service.
"I want to assure the customers that we don't pay RTG when RTG doesn't deliver the service."
OC Transpo pays Rideau Transit Group/Rideau Transit Maintenance approximately $5 million a month to operate the Confederation Line.
OC Transpo reported a $29 million operating budget deficit in 2023, mainly due to a drop in ridership.
The report shows the operating shortfall was offset by $27.79 million in "normal operational savings."
"The normal operation surplus was mainly attributable to reduced compensation expenditures from vacancies, lower O-Train Line 1 maintenance costs mainly due to the performance deductions per the project agreement with Rideau Transit Group, lower fuel costs and the delay of the opening of O-Train Lines 2 and 4 which were partially offset by higher Para Transpo service and fleet maintenance costs," the report says.
CTVNews.ca Top Stories
Grandparents killed in wrong-way crash on Hwy. 401 identified
A 60-year-old man and a 55-year-old woman killed in a wrong-way crash on Highway 401 earlier this week have been identified by the Consulate General of India in Toronto.
Police arrest 3 Indian nationals in killing of B.C. Sikh activist Hardeep Singh Nijjar
Three people have been arrested and charged in the killing of B.C. Sikh activist Hardeep Singh Nijjar – as authorities continue investigating potential connections to the Indian government.
Suter scores late goal, clinches series for Canucks
Pius Suter scored with 1:39 left and the Vancouver Canucks advanced to the second round of the NHL playoffs with a 1-0 victory over the Nashville Predators on Friday night in Game 6.
TD worst-case scenario more likely after drug money laundering allegations: analyst
TD Bank Group could be hit with more severe penalties than previously expected, says a banking analyst after a report that the investigation it faces in the U.S. is tied to laundering illicit fentanyl profits.
Quebec man who threatened Trudeau, Legault online sentenced to 20 months in jail
A Quebec man who pleaded guilty to threatening Prime Minister Justin Trudeau and Premier François Legault has been sentenced to 20 months in jail.
Human remains found in rural Sask. possibly a decade old, RCMP say
RCMP say human remains found in a rural area in central Saskatchewan may have been there for a decade or more.
Britney Spears 'home and safe' after paramedics responded to an incident at the Chateau Marmont, source tells CNN
A source close to singer Britney Spears tells CNN that the pop star is 'home and safe' after she had a 'major fight' with her boyfriend on Wednesday night at the Chateau Marmont in West Hollywood.
Canadian doctor concerned new weight-loss drug Wegovy may be used inappropriately
As Wegovy becomes available to Canadians starting Monday, a medical expert is cautioning patients wanting to use the drug to lose weight that no medication is a ''magic bullet,' and the new medication is meant particularly for people who meet certain criteria related to obesity and weight.
Drew Carey is never quitting 'The Price Is Right'
Drew Carey took over as host of 'The Price Is Right' and hopes he’s there for life. 'I'm not going anywhere,' he told 'Entertainment Tonight' of the job he took over from longtime host Bob Barker in 2007.